When fintech companies seek to launch or grow, one question often becomes paramount: Where will the funding come from? Building a business takes time, commitment and vision, but above all else it requires capital.
There are a number of different funding sources available for firms to choose from, including venture capital, synergy buyers, public equity, organic growth and private equity. Each option has distinct benefits, though none are free of potential drawbacks with implications not only for the success of the firm, but also the advisors who use their technology. Influence from poorly-chosen funding partners can significantly impact the user experience and level of service from a fintech firm’s offerings. Before you choose the technology that powers the day-to-day work of your business, it’s sensible to ask how each potential partner is funded.
This full article is published on FinancialPlanning.com. Read more of Eric’s thoughts on what advisors need to ask of their fintech providers.